IndiGo reports loss of Rs 2,582 crore in Q2 despite operating profit amid rupee depreciation, ETTravelWorld

InterGlobe Aviation Ltd (IndiGo), India’s largest airline, reported a net loss of INR 2,582 crore for the quarter ended September 30, 2025 (2QFY26), primarily due to rupee depreciation and revaluation of dollar-denominated lease liabilities. This represents a bigger loss compared to Rs 987 crore in the same quarter last year, even as core operations remain profitable.

Excluding the impact of foreign exchange losses, IndiGo posted an operating profit of Rs 104 lakh crore and a 10.4 per cent increase in total revenue to Rs 19,599 crore, supported by disciplined capacity deployment and consistent returns.

“The deployment of our enhanced capabilities has enabled us to achieve 10 per cent growth in headline revenues and, excluding currency impact, an operating profit of Rs 104 crore compared to last year’s operating loss,” said Peter Elbers, CEO, IndiGo. “As India’s aviation sector continues to mature, we recognize the importance of structurally improving capacity during seasonally weaker periods to maintain profitability.”

Forex and fuel dynamics influence the results

A weaker rupee against the US dollar reversed a profitable quarter on an operational basis. Total expenses for the quarter rose 18.3% to Rs 22,081 crore, driven by higher non-fuel costs and foreign exchange translation losses. Fuel costs fell 9.7% year-on-year to Rs 5,962 crore, but non-fuel expenses increased sharply to Rs 16,119 crore, reflecting higher rental and maintenance costs. IndiGo’s cost per available seat (CASK) excluding fuel and foreign exchange rose 3.9 per cent to INR 3.01 lakh, while fuel CASK fell 16.3 per cent to INR 1.45 lakh.

Despite the bottom line impact, IndiGo’s EBITDAR excluding foreign exchange improved significantly by 42.5 per cent to Rs 3,800 crore, indicating strong underlying profitability.

Revenues, revenues and capacity metrics are constant

Passenger ticket revenue rose 11.2% to Rs 15,967 crore, supported by sustained demand and stable revenues, which improved by 3.2% to Rs 4.69 lakh crore. Incremental revenues grew 14.2% to Rs 2,141 crore, reflecting strong traction in non-ticket revenue streams. Capacity, measured by available seat kilometers (ASKs), rose 7.8 percent to 41.2 billion, while passenger traffic rose 3.6 percent to 28.8 million. Load factor remained stable at 82.5%, reflecting balanced utilization amid steady growth in capacity.

Fleet and reliability

As of September 30, 2025, IndiGo operated a fleet of 417 aircraft, including 180 A320neos, 153 A321neos, 47 ATRs, three A321 freighters and four wide-body aircraft on wet lease. The airline operated as many as 2,244 daily flights during the quarter, connecting 94 domestic and 41 international destinations.

The carrier maintained 99.89 percent technical transmission reliability and 89.8 percent on-time performance across six major metro lines, with a trip cancellation rate of 0.5 percent.

Liquidity position remains strong

Despite the quarterly loss, IndiGo’s liquidity position remains strong with a total cash balance of Rs 53,515 crore, including Rs 38,517 crore of free cash and Rs 14,999 crore of restricted cash. Total debt, including Rs 49,651 crore in capitalized lease liabilities, stood at Rs 74,814 crore.

“The quarter saw stabilization from July onwards and a strong recovery during August and September,” Elbers said. “We have enhanced our capacity guidance for the full fiscal year 2026 into the early teens. The airline remains focused on sustainable growth supported by cash discipline, strong network execution and customer confidence.”

Expectations

IndiGo expects capacity growth at high rates during Q3FY26 compared to the same period last year. The airline continues to focus on revenue management, operational reliability and fleet efficiency to match the increasing travel demand during the second half of the financial year.

The contrasting performance – reported loss due to currency exchange rate fluctuations versus strong operational turnaround – highlights the opportunities and structural risks facing Indian airlines as they expand in a volatile macro environment.

Highlights: Q2FY26 (YoY)

• Net Loss: INR 2,582 Crore (vs INR 987 Crore Loss in Q2FY25)
• Profit excluding Forex: INR 104 Crores (vs loss of INR 754 Crores)
• Total Revenue: INR 19,599 Crore (+10.4%)
• Operating Revenue: INR 18,555 Crores (+9.3%)
• EBITDA (excluding Forex): Rs 3,800 crore (+42.5%)
• Number of passengers carried: 28.8 million (+3.6%)
• Cash balance: INR 53,515 crore

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